German inflation eases to 2.4% in June as energy prices fall

Preliminary data show Germany’s headline consumer‑price inflation slipped to 2.4 % in June, down from 2.7 % in May. The decline was driven by a sharp slowdown in energy inflation, which fell to 3.4 % after a temporary fuel‑tax rebate was introduced to cushion war‑related price spikes. Core inflation, which excludes food and energy, remained stable at 2.5 %.

France’s June inflation also cooled, with the harmonised index reported at roughly 2.0 % (INSEE’s provisional figure was 1.8 %). The drop was mainly due to lower oil and petroleum‑product prices, while services and food price growth also decelerated.

The Ifo price‑expectations index fell for a second consecutive month, from 30.0 to 26.4 points, indicating fewer German firms plan to raise prices. Regional data across German states similarly point to a modest drop in inflation rates, now expected around 2.2‑2.4 % for June.

These developments reduce inflationary pressure on the European Central Bank, supporting expectations of a rate‑hold at its July meeting.